Jewel's Gems sells gold necklaces. On December 1, 2014, Jewel's had 230 necklaces in inventory at a cost of $120 each. During December, the following transactions occurred:

Dec. 1 Purchased 500 necklaces at $120 each from Lindal Gold Fashions on account, terms net 30.

4 Returned 30 of the necklaces purchased from Lindal because they were defective.

9 Paid the balance due on the Lindal account payable

12 Sold 600 necklaces for $250 each, terms n/30, FOB destination

13 Freight $250 on the Dec 12 sale paid by the appropriate party

16 Purchased 150 necklaces from Green wholesale Jewelers for $120, terms n/30.

17 Sold 30 of the necklaces for cash, $325 each

19 Customer returned 2 of the necklaces purchased on Dec 17. Provided a cash refund. The necklaces were returned to inventory.

Instructions

Using the perpetual inventory system, prepare the journal entries to record the transactions.

Answer rating: 100% (QA)

Assumptions for the data 1 the company is using the FIFO method for inventory management 2 12th Dec ... View the full answer